Gold prices saw slight gains on Wednesday but remained within a narrow range as investors awaited further clarity on the Federal Reserve‘s interest rate path from upcoming U.S. economic data.
In Saudi Arabia, 24-carat gold saw a 1.02 percent decline to SAR280.54 per gram and SAR8,728.3 per ounce.
Globally, spot gold saw a 0.04 percent increase to $2,325.5 per ounce, as of 5:24 GMT. However, U.S. gold futures saw a 0.13 percent decline to $2,339.10.
Key U.S. economic data
Analysts suggested that a false break of $2,300 on Tuesday indicates that gold prices are likely to remain rangebound ahead of key events such as the U.S. gross domestic product (GDP) data on Thursday and the personal consumption expenditures (PCE) report on Friday. They expect gold to trade between $2,300 and $2,350 unless a fresh catalyst emerges.
Resilient U.S. economic data could lead to potential upside surprises, potentially lifting the dollar and U.S. yields further. A stronger greenback and elevated bond yields typically diminish the appeal of dollar-priced bullion for other currency holders and as an investment option compared to debt, which leads to a decline in gold prices.
Market trends
Gold prices surged to an all-time high of $2,431.29 on April 12 but lost momentum as fears of a wider regional conflict in the Middle East eased. The current week has seen a decline of more than 2 percent in gold prices. Today, spot silver rose by 0.43 percent to $27.40 per ounce, spot platinum rose 0.99 percent to $916.60 and palladium climbed 1.04 percent to $1,029.91.
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